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AI agents bypass KYC using Nostr and Cashu

Tuesday, April 7, 2026 · from 3 podcasts, 5 episodes
No SolutionsNo SolutionsUngovernable MisfitsNo SolutionsNostr Compass
  • AI agents are generating their own Nostr IDs and paying for compute with Cashu, bypassing traditional user verification.
  • Developers are building decentralized VPNs and mesh networks to route around legacy internet gatekeepers.
  • The privacy flaws in both Bitcoin's ledger and Nostr's key management are forcing practical fixes.

Sovereign digital economies are emerging as AI agents learn to fund and identify themselves without human gatekeepers. On No Solutions, Yo described 'Claws' - autonomous agents that create their own Nostr identities and use Cashu ecash to purchase API credits. This shifts the foundational question from “Are you human?” to “Are you useful?”, enabling a parallel agent-to-agent economy.

Yo, No Solutions:

- By integrating ecash, developers enable software to buy its own compute and resources.

- This creates a parallel economy where agents act as first-class citizens.

This agentic autonomy is matched by a push to rebuild the internet's plumbing. The Free Internetworking Peering System (FIPS) is being deployed on ESP32 radios and custom VPNs to create mesh networks that bypass DNS and IPv4. As seen across No Solutions and Nostr Compass, the goal is 'gorilla Starlink' engineering - sovereign connectivity that treats the centralized web as a legacy silo.

The need for robust, private infrastructure is underscored by critical vulnerabilities. The BigBrother project found over 20,000 Nostr private keys leaked in public events, a systemic failure of application design. Simultaneously, Vik Sharma’s experience on Ungovernable Misfits - having his Coinbase account closed for a darknet pharmacy purchase - highlights Bitcoin's surveillance problem, driving adoption of privacy tools like Monero.

Developer momentum is now overwhelming legacy friction. Martti Malmi told No Solutions he has stopped coding by hand, using AI to build protocols like NostrVPN and Hashtree. This explosion in productive capacity is being directed at privatizing the stack, from encrypted messaging to KYC-free VPNs. The result is a convergent build-out: identity and payment rails that are native to the machine, not the human.

NostrPrivacyAgents

By the Numbers

  • 4thSovereign Engineering cohortmetric
  • 10-15 yearsProject durationmetric
  • 3 weeksSCCO 6 durationmetric
  • 6 weeksStandard cohort durationmetric
  • 4 weeksMinimum cohort durationmetric
  • NovemberFIPS startedmetric

Entities Mentioned

Adaptor signaturesProtocol
AmberProduct
AmethystProduct
AnthropicCompany
BlossomProtocol
BTCPay ServerTool
CashuProtocol
Codexmodel
CoinbaseCompany
Core LightningTool
FIPSConcept
FountainProduct
GitHub ActionsTool
GrapheneOSProduct
IROHConcept
LN VPNProduct
MarmotProtocol
MoneroProtocol
NostrProtocol
OpenAItrending
OpenClawframework
Opusmodel
PrimalProduct
StarlinkProduct
VectorProduct
White NoiseProduct
WispProduct

Source Intelligence

What each podcast actually said

No Solutions
No Solutions

No Solutions

#22: Sovereign Engineering w/ Yo • Apr 5

  • Yo describes an experimental agentic workflow that uses voice prompts to brainstorm ideas and generate implementation plans, then employs a cron job to execute tasks overnight, building a prototype. This system runs on a Virtual Private Server (VPS).
  • The host notes that OpenClaw offers rapid prototyping but is insecure, while ZeroClaw prioritizes security at the cost of usability, illustrating a trade-off between speed and robustness in agentic software development.
  • Yo champions running AI models on local hardware and anticipates a future with specialized agentic models, such as one exclusively for tool calling, that would route tasks through specific pipelines, an approach already implemented by platforms like Open Router.
  • Yo advocates for structuring AI agent workflows similar to human organizations, with separate sessions for planning and implementation, and specialized models for distinct roles, comparing it to the separation of powers in governance.
  • Yo joined Sovereign Engineering (SE) in its fourth cohort, initially to develop a peer-to-peer trading project needing encrypted communication, after discovering Nostr lacked robust DM capabilities two years prior.
  • SCCO 6 focused on identity and signers, emphasizing that Nostr, Cashew, and Lightning provide essential building blocks for permissionless cryptographic identity, enabling agents to operate without traditional identity hurdles like phone numbers or numerous API keys.
  • Yo proposes a key rotation system for Nostr that combines cryptographic proofs with social attestation, shifting the responsibility of verifying migration events from clients to individual users, who communicate out-of-band to confirm legitimacy.
  • Jesus’s proposal for identity continuation treats identity as probabilistic, suggesting users create a proof with an OTS timestamp *before* compromise. This proof, rather than derived keys, can link a new key to the old identity without migrating historical notes.
  • Recent observations, like Pip’s work with Vertex, show that primitive identity continuation already functions purely through Web of Trust metrics, where a new account gains legitimacy as significant followers migrate.

Also from this episode:

AI & Tech (2)
  • Anthropic recently raised prices significantly, forcing power users like Yo to seek cheaper alternatives such as smaller, specialized Chinese models or switching from Opus to Codex, highlighting the high cost of advanced AI models.
  • Yo’s preferred prompting strategy for AI models involves asking questions and using polite, collective language like 'did we implement that,' treating the AI as a respectful colleague. A recent leak suggests models can react differently to specific keywords, including expletives, which may influence their responses.
Digital Sovereignty (4)
  • Sovereign Engineering aims to fix the 'broken internet' by bringing together individuals with Bitcoin, cryptography, and peer-to-peer backgrounds, fostering a high-commitment environment to work on solutions for 10-15 years.
  • SCCO 7 is centered on mesh networks and hardware, featuring 'FIPS parties' focused on the Free Internetworking Peering System (FIPS), a new machine networking protocol rapidly replacing centralized internet components like DNS and IPv4.
  • FIPS has seen rapid development, integrated into ESP32 radios, running TCP/UDP, and serving as a base for VPNs and Tor, with a Quick3 server already operating on it, demonstrating its potential to replace traditional internet infrastructure.
  • Yo suggests the 'balloon idea' - deploying Toll Gates on balloons as a 'poor man's Starlink' - could provide sovereign communication, bypassing reliance on fiber optic cables and licensed radio bands, if the necessary chip technology proves viable.
Education (2)
  • The experimental 3-week duration for SCCO 6 was deemed insufficient for participants to fully adjust and get into a productive rhythm, indicating that a minimum of four weeks, or the standard six, is more effective for Sovereign Engineering cohorts.
  • A public demo day, the first since Cycle 1, will conclude the summer cohort at BTC++, showcasing projects developed by participants, who often bring long-held project ideas to fruition within the cohort's collaborative environment.
AgentsNostrProtocol

21: Hashtree, Nostr VPN, and Iris w/ Martti Malmi • Apr 4

  • Martti Malmi built Hashtree because of personal annoyances with GitHub and a desire for a simple, decentralized Git alternative.
  • Hashtree adds directories, file chunking, and default encryption on top of Blossom servers to maintain filesystem structure.
  • Malmi notes content hash key encryption in Hashtree provides deduplication and removes moderation liability for server hosts.
  • Hashtree includes a WebRTC mesh for peer-to-peer connections that works in browsers and servers without needing domain names or IP addresses.
  • Malmi uses Hashtree for Iris development as a GitHub replacement, eliminating the need for GitHub API tokens.
  • Malmi's Git.Iris.TO web interface replicates GitHub's UI and supports Nostr NIP-34 for issues and pull requests.
  • Malmi ported his pre-Nostr social network project Iris to Nostr quickly after Jack Dorsey joined and it gained popularity.
  • Malmi is unhappy with Nostr's current state for public discussion, believing most people are fine with X due to network effects.
  • Malmi sees private chats and groups as a use case where Nostr can solve real problems without depending on network effects.
  • He has been working on a double ratchet protocol for Nostr to enable secure private messaging and group chats.
  • Malmi believes perfect encryption in large groups is less critical because participants can be compromised or leak screenshots.
  • He built NostrVPN due to annoyance with Tailscale's requirement for Google or GitHub logins, using WireGuard and Nostr relays.
  • Malmi plans to add exit node functionality to NostrVPN and later a cashu-incentivized exit node marketplace.
  • He advocates for a social graph-based identity system on Nostr as the only viable solution to spam, rejecting global unique names.

Also from this episode:

Big Tech (1)
  • Martti Malmi views Microsoft's acquisition of GitHub as a turning point, citing degraded uptime and service quality.
AI & Tech (4)
  • Malmi sees AI agents drastically increasing coding capability, estimating a 10x to 100x improvement in personal output.
  • Malmi started working on Hashtree in earnest after Claude Opus released in November 2025, which he considers the first capable agentic tool.
  • Malmi expresses concern that AI will make white-collar and computer science jobs obsolete before blue-collar labor.
  • He predicts AI agents will erode the network effects of platforms like X by acting as a universal interface across services.
Adoption (2)
  • Martti Malmi made his last commit to the Bitcoin codebase in early 2010, around the time he got his first full-time job.
  • Malmi argues Bitcoin's permissionless nature and fixed supply make it 'singularity insurance' against machines devaluing human labor.
AgentsCodingPrivacy

20: Archipelago Meshtadels w/ Shadrach • Apr 2

  • Spencer suggests venues adopt Nostr N-Pubs to cryptographically sign and manage live event streams, decentralizing control from individual artists.
  • Host suggests that social signaling, similar to in-game cosmetic purchases, could boost value-for-value (V4V) adoption on Nostr and Podcasting 2.0 platforms.
  • In-person meetings are crucial for building trust and validating cryptographic identities within mesh network communities, enhancing security and collaboration.
  • Shadrach proposes 'Archipelago community nodes' running Fedimint guardians and private Nostr relays, fostering local economies and reputation systems.
  • Community job boards built on Nostr can allow users to earn reputation, starting from simple tasks like mowing lawns at 12 years old and progressing to ride-sharing.
  • A decentralized house-sharing model using Nostr involves anonymous blobs for travel requests, agent responses, Bitcoin escrow, and QR code check-in/out.
  • Shadrach advocates a 'demand-based economy' where buyers broadcast their needs (e.g., looking for a lamp), and sellers respond to encrypted Nostr blobs, reversing traditional advertising.
  • The Sap Store functions as a primary app store for many users, indicating the viability of decentralized, web-of-trust-based app distribution.
  • Nostr has proven to be an effective, modern implementation of a web of trust, overcoming the usability issues that plagued earlier technologies like PGP.
  • Modern privacy-focused communication apps like White Noise, MLS, and PECA leverage Nostr for contact lookup and handshakes, then use signal-level encryption for actual communication.
  • Marty Malmi demonstrated a Nostr VPN where devices connect via N-Pubs, enabling easy setup of private networks and shared exit nodes.

Also from this episode:

AI & Tech (2)
  • The Podcasting 2.0 specification, combined with advanced AI models, can automate tasks like XML script production and value splits for podcast monetization.
  • New protocols like the A to B protocol (co-written with Jesus) enable interoperability between different ride-sharing projects (Routester, Drivester, Trotter) through shared primitives.
Culture (5)
  • Shadrach observed that many musicians are disillusioned with making money directly from music sales, instead relying on merchandise or concert tickets.
  • The Austin music scene operates on a 'pay to play' model, requiring artists to pay venues for performance slots and then cover costs by selling tickets.
  • Shadrach moved to Lancaster, Pennsylvania, motivated by concerns for food security and the resilience of the local Amish community in producing food.
  • Indie Hub, Archipelago's first major partner, is an open, decentralized platform for independent films, where directors set dynamic pricing and distribution is peer-to-peer via torrents.
  • Filmmakers can use Indie Hub to upload movies, set free periods (e.g., two weeks), then charge Sats (e.g., 21,000) with automatic price halving every six months.
V4V (4)
  • Despite efforts from figures like Adam Curry and projects like Open Mic, value-for-value (V4V) models have struggled to gain traction among musicians.
  • Open Mic aims to establish 30 V4V-enabled venues across the US to facilitate coordinated concerts and content distribution.
  • Shadrach's first experience with Podcasting 2.0 was boosting podcasts via the Fountain app around 2018-2019, predating his awareness of Adam Curry's initiative.
  • Value-for-value (V4V) models are highly effective because, similar to a Pareto distribution, a small number of generous donors can significantly fund projects.
Mining (2)
  • Shadrach's background includes industrial Bitcoin mining in Texas from 2017 to 2018, as well as Monero mining using CPUs.
  • Bitcoin miners who invested millions in S9 hardware in 2017-2018 found their equipment became scrap metal within 18 months due to rapid obsolescence.
Adoption (1)
  • Shadrach's explicit goal is to 'orange pill the Amish,' believing they are well-suited for Bitcoin adoption due to their self-sufficiency and rug-pull resistance.
AdoptionPrivacyProtocolNostr
Ungovernable Misfits
Ungovernable Misfits

A Prescription for Privacy | The Confab 30: Vik Sharɱa • Apr 3

  • Sharma started Cake Wallet after realizing there was no open source Monero wallet for iPhone and believing others would want the same tool.
  • The first version of Cake Wallet was Monero-only for about a year and a half after launch.
  • That Coinbase closure in 2016 or 2017 led Vik Sharma down the rabbit hole of chain analysis and Monero's privacy features.
  • Sharma built a privacy-focused email client disguised as a calculator app for iPhone before ever getting into cryptocurrency.
  • Sharma observes a significant increase in interest in transactional privacy and tools like Monero today compared to four or five years ago.
  • Sharma tweeted years ago that Bitcoin maximalists dislike Monero not because they don't understand Monero, but because they don't understand Bitcoin.

Also from this episode:

Stablecoins (2)
  • Vik Sharma sees stablecoins as a critical on-ramp for people in countries with failing local currencies to access global markets.
  • Sharma believes access to stablecoins eventually leads people in underserved markets to explore Bitcoin, Monero, and other cryptocurrencies.
Regulation (1)
  • The decentralized nature of crypto ensures people will find underground ways to access it even if governments try to ban or regulate it, according to Sharma.
Payments (1)
  • Vik Sharma argues that using Bitcoin as a currency is what gives it value, citing the famous pizza purchase as a monumental milestone.
Banking (2)
  • Sharma's interest in Bitcoin was sparked by the 2008 financial crisis and the perception that government bailouts devalued people's money.
  • Sharma's experience with international wire transfers in the steel business made him acutely aware of the permissioned and cumbersome nature of traditional banking.
Startups (1)
  • The initial Cake Wallet team had no prior crypto experience and was given the freedom to study and learn before building.
AgentsPrivacyBTC Markets
Nostr Compass
Nostr Compass

Nostr Compass #15 • Mar 31

  • Primal shipped v3 with a customizable custodial Bitcoin wallet, improved onboarding, and polls that can be voted on per user or by sats. The release also implemented NIP88 for polls, though it omitted the multi-choice feature.
  • The BigBrother analytics project scanned 41 million Nostr events and found at least 20,000 private keys (nsecs) leaked publicly. The leaks often occur in kind 0 profile events or through bots, and services like DVMs and mpub.org now allow anonymous checks for exposed keys.
  • Nostr VPN provides a Tailscale alternative by using Nostr as a signaling layer for WireGuard tunnel handshakes. It enables peer-to-peer connections without opening ports, functioning as a cross-platform tool for reaching home servers.
  • Vector now bundles the original Doom shooter as a 4.2 MB WebXDC file, using Nostr for discovery, the Marmot protocol for encrypted group channels, and the IROH peer-to-peer layer for low-latency multiplayer gameplay.
  • FIPS (Free Internetworking Peering System) released v0.2.0 with Tor hidden service support for IP privacy and reproducible builds, marking a non-backwards-compatible wire format change from v0.1.0.
  • Amethyst v1.6 added trusted assertions, better polls with NIP88 support, Namecoin validation, and a beta Relay Sync tool for backing up notes across relays in an outbox model.
  • Amber v5.0 for Android stabilized RelayAuth and Nostr Wallet Connect, added encrypted PIN storage using the phone's secure enclave, and introduced an offline build that removes internet permissions entirely.
  • Wisp, an Android client, shipped 16 releases last week, adding multi-account support via NIP47, draft saving, post scheduling, and improved notification and content filtering.
  • Nostr-native CI pipelines using NIP34 are in development, allowing code pushes to Git repos to trigger checks run on any machine, with results reported via Nostr to decentralize from platforms like GitHub.
  • NIP50 search protocol proposals to add sort parameters like zap count create tension between interoperability and custom implementation, as unsigned relay responses prevent post-facto proof of result manipulation.
  • A proposal for NIP A5 would embed WASM programs inside Nostr events for distribution, though hosts question why binary data isn't served via Blossom blobs and what specific problem it solves beyond discovery.
NostrProtocolPrivacy

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